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Originally Posted by tbwinner
Now, I'm not an expert in labor/management relations, but it seems the actions of 6,000 could affect 18,000 employees tomorrow. The Union of 6,000 Hostess employees refuses to take the 8% pay cut in order to remain in operations during Ch 11 reorganization and could force Hostess to go into liquidation, thereby cutting all 18k jobs.
http://www.chicagotribune.com/news/c...,6249411.story
The last sentence/quote speaks mountains about the entitlement society that extended unemployment has created:
"But if I have to take the cuts they're talking about I can get more from unemployment." |
The cut is 32% not 8%. The 8% is just the first of many proposed cuts. Do you understand what a 32% cut means? The story talks about a worker who makes $17 an hour. After a 32% cut that workers annual salary goes from $35,360 a year to $24,044 a year. And that is before taxes are deducted; taxes and Social Security and Medicare. Basically they are reduced to the poverty level.
Hostess is owned by two hedge funds. This is Bain Capital all over again. Instead of modernizing the facilities and investing in new equipment, they stopped funding the pension plan. Instead of paying the employees they diverted money to executive salaries. The company is going under not because of union intransigence. It is going under because the owners want it to go under. This is a classic example of vulture capitalism.
